A 39-km carriageway, set to be constructed in early 2016, will connect the cities of Stip and Radovis. Funds estimated at Euro 64 million have been provided by the European Bank for Reconstruction and Development. A contract on the loan was signed Wednesday by Zoran Stavreski, Deputy PM and Finance Minister, Sue Barrett, EBRD Director for Transport, Holger Muent, EBRD Director for the Western Balkans and Aleksandar Stojanov, Acting General Manager of the Public Enterprise for State Roads (PESR).

“The road construction is an effort to modernize the road infrastructure in eastern and southeastern Macedonia, which upgrades the Skopje-Stip highway… It’s a vital investment cycle in the road infrastructure that in 2016 will be estimated at more than EUR 200 million,” Stavreski said adding that several other roads were planned to be built next year. “Improving the infrastructure is a prerequisite for economic development and for boosting the economy’s competitiveness.”

The loan, he stated, has been approved under favorable conditions including a payment period of 15 years, a 4-year grace period and an interest rate that currently stands at 0.99%.

This is the 14^th project in the transportation sector in Macedonia that is supported by the EBRD, said the institution’s Director for Transport, Barrett. “We have invested a total of EUR 660 million in transport infrastructure. This figure demonstrates the excellent cooperation with the Government.”

The improvement of this road section is crucial in terms of regional integration, because it is a vital connection to Bulgaria and is connected with the new road north of Stip towards the pan-European corridors VIII and X, according to Barrett. “This will play an important role in terms of mobility of the citizens in Macedonia and movement of goods and economic growth,” she said.

The EBRD Director for the Western Balkans said that by modernizing the road infrastructure in Macedonia, the country would become more attractive for foreign investors by offering better export opportunities.

Muent noted that this year the EBRD would single out EUR 140 million for investments in transportation, private sector, energy, etc.

PESR Director Stojanov stressed that new, overhauled roads generated increased movement of vehicles, enabled swift and economical transportation and, first and foremost, contributed to strengthened road safety. “Our intensive cooperation with the EBRD is testimony to our commitment to the development of the national roads infrastructure,” he said.

The EBRD began investing in the Macedonian economy in 1993. To date, it has signed over 90 projects in the country with a net cumulative business volume of more than €1.5 billion.